US giant IBM and an Indian technology firm said on March 7 they had devised a smart card to help poor entrepreneurs access credit from institutions that lend to the un-banked. Small traders who have borrowed from microfinance institutions such as Bangalore-based Janalakshmi. Social Services will be able to take part in fruit and vegetable auctions using the card, without having to take loans from greedy moneylenders.

A technology platform developed by IBM and Financial Information Network and Operations, a unit of India’s second-largest bank ICICI, will hold customer accounts of microfinance companies. The system would be accessed by customers using a fingerprint-enabled smart card, which will serve as both proof of identity and an electronic passbook, the two companies said in a joint statement in Bangalore.

Financial Information Network said it plans to approach 200 micro-lenders based in India and abroad with the technology, enabling them to offer the poor not only credit but also investment, remittances and insurance services.